Tales from the V-shaped recovery

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Summer Concepcion writing for Talking Points Memo:

Kudlow expressed optimism that jobless claims will fall, saying that he thinks “the odds favor a big increase in job creation and a big reduction in unemployment.”

Kudlow went on to claim, without going into specifics, that most economists and Wall Street suggest that the country is in “a self-sustaining recovery” despite how states that have emerged as coronavirus hot spots “are going to moderate that recovery.”

Kudlow then continued painting a rosy picture by saying that it’s “very positive” because he still thinks “the V-shaped recovery is in place,” which will lead to a 20% growth rate in the third and fourth quarters.

Later in the interview, Kudlow doubled down on his rosy sentiment by saying that the economy is improving by “leaps and bounds” due to “more states that are reopening and doing very well.”

Zack Stanton writing for Politico

When the economist Betsey Stevenson looks at the pandemic-era economic crisis, she sees a long-simmering child care crisis that has suddenly surged to the foreground of people’s lives—and whose true scope we’ve barely begun to reckon with. Its potential to inflict lasting damage to the economy is enormous, and it’s getting short shrift in the recovery plans coming out of Washington.

“The work of recovering from it will not end just because we have a vaccine,” says Stevenson, a labor economist at the University of Michigan and former member of President Barack Obama’s Council of Economic Advisers. “We are making choices right now about where we will be as an economy in 20 years, in 30 years, based on what we do with these kids.”

Among those most likely to be affected are working mothers, who shoulder an outsize share of child care responsibilities, and have suddenly had far more work dropped in their laps. Women already need to make difficult choices between work advancement and their family roles, which can bring down their incomes over time; Stevenson expects the crisis to make that conflict sharply worse: “The impact of the child care crisis on women’s outcomes is going to be felt over the next decade.”

The Bureau of Labor Statistics estimates that both parents work in two-thirds of families in which married parents have children — as do the majority of America’s 13.6 million single parents. For all of them, there are major long-term financial repercussions of dropping out of the labor market, even temporarily.

“When you talk about upward mobility,” she says, “this puts families on just a completely different trajectory that’s not about losing two or three years of income; it’s about being on a lower earnings trajectory for the rest of your life.”

And for anyone hoping a vaccine will allow a quick, healthy reopening sometime next year, she says: Don’t count on it. “We are letting the whole child care system erode in such a way that it’s not going to be there for us when we are fully ready to go back. You’re seeing child care centers that can’t stay in business. They can’t figure out how to reopen. They can’t keep their employees on staff. They’re letting people go,” Stevenson says.

“Once we are ready to have all the jobs come back and we’re really ready to recover, even though we’ll have opened the schools, opened the child care centers, the workers aren’t going to be there, the slots aren’t going to be there.”